Crude oil prices are poised to weaken in Asia on Wednesday as pressure for lower prices by U.S. President Donald Trump and production curbs by OPEC take center stage.
ICE Brent was quoted at US$65.16 a barrel, down 7.07 percent in after-hours trade, while NYMEX West Texas Intermediate was down 7.83 percent to US$55.24 a barrel. Brent crude oil futures settled sharply down by 6.33 percent to US$65.47 a barrel on Tuesday. WTI ended down 7.07 percent to US$55.69 a barrel.
“The toxic combination of weakening global demand [for crude] and oversupply has sent prices tumbling,” said Stephen Innes, head of Trading APAC, at Oanda.
The initial catalyst was U.S. President Donald Trump tweeting oil prices “should be much lower based on supply!” said Innes. He noted that due to a slowing global economy, “OPEC announced Tuesday in its Monthly Oil Market Report, that it sees demand for the cartel’s crude declining at a more rapid pace than initially anticipated in 2019.”
Meanwhile, the U.S. Energy Information Administration reported Tuesday that U.S. crude oil production is expected to hit a record of 7.94 million barrels per day.